Kredivo Empowers Manado's Growth
In early October, Artemis teamed up with *Kredivo*, one of Indonesia's leading digital credit companies, to continue their expansion into Tier 2 and 3 cities, primarily focusing on providing access to credit for those who have faced financial limitations. Manado, a city in Eastern Indonesia, has been a priority for Kredivo since November 2020, and the growth of Kredivo users in this region has surged by a staggering 9-fold this year, accompanied by partnerships with over 8 local merchants. Furthermore, the local economy in this region has shown progressive growth since 2016, as evident in North Sulawesi's economic growth in Q2 2023, which reached 6.28% year-on-year.
Indina Andamari, SVP Marketing & Communications at Kredivo, expressed, “We see Manado as a region with high economic growth potential, especially in the creative and tourism sectors. Therefore, we believe that the introduction of optimal digital credit access in this area can accelerate regional economic growth. Our focus in Manado is to partner with as many local merchants as possible to empower the local potential while making it easier for consumers to access credit by providing low-interest Paylater payment methods, which are increasingly preferred by the community for shopping.”
Presently, several well-known local merchants have integrated with Kredivo, including Suara Elektro, Kana Cell, MMB Group, Cindy Cell, Parafone, Dio Cell, Planet Gadget, and Plaza Bangunan. The integration of local merchants with Kredivo is expected to boost their transaction frequency and expand their market reach. According to Kredivo's internal data, offline transactions in Manado have increased by up to 42% in 2023 compared to 2022, particularly in gadget & electronics and food categories. Moreover, Kredivo's data reveals that the average order value at Kredivo's merchant partners has more than doubled, and transaction frequency has tripled. In the future, Kredivo aims to integrate with dozens of local favorites in Manado, including small and medium-sized businesses.
In addition to providing value for merchants, Kredivo also offers convenience to users by enabling flexible installment plans of up to 12 months with interest rates starting at 0% at thousands of offline and online merchants, with a credit limit of up to 50 million Indonesian Rupiah. Through the Kredivo app, users can top up their phone credit, purchase data packages, pay for pre-paid electricity (PLN), and settle other bills. Kredivo has also partnered with PT FinAccel Digital Indonesia, known for its "KrediFazz" platform, to provide affordable unsecured loans.
"As an officially licensed and regulated financial platform under the supervision of the OJK (Financial Services Authority of Indonesia), Kredivo is committed to responsible lending. This includes offering reasonable and affordable interest rates, being selective in extending credit to users with a demonstrated low default rate, and providing proportional credit limits based on the consumer's ability to repay. Additionally, Kredivo actively engages in educational activities to promote wise use of Paylater services. In 2021, we launched the 'Generasi Djempolan' (Outstanding Generation) campaign in Manado to encourage the younger generation to be financially literate and make wise choices when using digital financial services," concluded Indina.
Kredivo has rolled out promotional offers for Manado users, valid across all local merchant partners until December 31, 2023. Kredivo users in Manado have the opportunity to enjoy a 5% discount of up to 500,000 Indonesian Rupiah and one month of free installment for a 12-month tenor. Furthermore, Kredivo introduces the "Kredivo Gadget Fair," a gadget shopping program at participating local merchants in several Indonesian cities, including Manado, from October 1 to November 30, 2023. Users shopping for gadgets during this period have the chance to win an iPhone 15 and many other exciting prizes.